A quote from the Basel Committee on Banking Supervision (Bank for International settlements) on "Principles for Sound Liquidity Risk Management and Supervision," is as follows:
"Liquidity is the ability of a bank to fund increases in assets and meet obligations as they come due, without incurring unacceptable losses… Liquidity risk management is of paramount importance because a liquidity shortfall at a single institution can have system-wide repercussions. Financial market developments in the past decade have increased the complexity of liquidity risk and its management."
Discuss the above quote in terms of why liquidity risk and its management has become more complex and entails more risk in the past decade.

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The Answer is With technology and the ease to withdraw funds, and the widespread use by financial institutions of liability management entailing for instance repurchase agreements using less traditional collateral for agreements, and large financial institutions having huge amounts of short-term liabilities globally, liquidity risk and liability management have become more complex, with the inability of large financial institutions to roll over short-term liabilities during the Subprime Loan Crisis, resulting in severe liquidity crises for large financial institutions, such as Lehman Brothers and Bear Stearns that contributed to their failures. Hence, most large financial institutions have invested in data and technology to improve their liquidity risk management frameworks from a strategic perspective.

A Quote from the Basel Committee on Banking Supervision (Bank